LOS ANGELES--(BUSINESS WIRE)--Herbalife Ltd. (NYSE: HLF) today reported fourth quarter net sales of
$1.1 billion, reflecting an increase of 20 percent compared to the same
time period in 2011 on volume point growth of 18 percent. Net income for
the quarter of $117.8 million, or $1.05 per diluted share, compares to
2011 fourth quarter net income of $105.4 million and EPS of $0.86,
respectively.

For the twelve months ended December 31, 2012, the company reported
record net sales of $4.1 billion, an 18 percent increase on 20 percent
growth in volume compared to 2011. For the same period, the company
reported net income of $477.2 million, or $4.05 per diluted share,
reflecting an increase of 16 percent and 23 percent, respectively,
compared to the 2011 results of $412.6 million and $3.30 per diluted
share.

“Herbalife continues to deliver record results in sales and
profitability as our independent distributors go deeper into existing
markets, developing more and more customers using our nutrition products
every day,” said Michael O. Johnson, Herbalife’s chairman and CEO.
“Obesity and poor nutrition are global public health problems. Our
distributors are proud to be part of the solution.”

For the year ended December 31, 2012 the company generated cash flow
from operations of $567.8 million, an increase of 11 percent compared to
2011; paid dividends of $135.1 million; invested $122.8 million in
capital expenditures; and repurchased $527.8 million in common shares
outstanding under our share repurchase program.

Fourth Quarter and Fiscal 2012 Regional Key
Metrics1,2

Regional Volume Point and Average Active Sales Leader Metrics

Volume Points (Mil)

Average Active Sales Leaders

Region

4Q'12

Yr/Yr % Chg

4Q'12

Yr/Yr % Chg

North America

267.0

15%

68,029

14%

Asia Pacific

304.6

18%

69,553

26%

EMEA

156.6

14%

47,226

14%

Mexico

208.9

13%

61,836

19%

South & Central America

222.5

34%

50,874

28%

China

50.5

17%

12,560

25%

Worldwide Total

1,210.1

18%

300,521

20%

Volume Points (Mil)

Average Active Sales Leaders

Region

FY'12

Yr/Yr % Chg

FY'12

Yr/Yr % Chg

North America

1,157.8

17%

66,054

16%

Asia Pacific

1,197.8

25%

63,255

31%

EMEA

602.5

11%

44,098

14%

Mexico

815.4

16%

57,651

21%

South & Central America

740.4

30%

44,980

29%

China

206.5

34%

11,683

33%

Worldwide Total

4,720.4

20%

277,803

22%

2012 Annual Sales Leader Requalification

By the end of January of each year, sales leaders are required to
re-qualify to retain their sales leader status. A record number of sales
leaders were retained in 2012. The overall pool of sales leaders needing
to re-qualify increased by approximately 21% compared to the prior year
and we retained 20% more of them than in the prior year. While size of
the group needing to re-qualify increased for the year, our overall
retention rate remained fairly constant at 51.8%.

________________________________________1Supplemental
tables that include additional business metrics can be found at http://www.ir.herbalife.com.

2Worldwide Average Active Sales Leaders may not equal the sum
of the Average Active Sales Leaders in each region due to the
calculation being an average of Sales Leaders active in a period, not a
summation, and the fact that some sales leaders are active in more than
one region but are counted only once in the worldwide amount.

Updated 2013 Guidance

Guidance for fully diluted 2013 EPS is based on the average daily
exchange rates of January 2013, which in aggregate are not materially
different from the foreign currency exchange rates assumed in our prior
guidance. Our 2013 guidance continues to assume a Venezuelan exchange
rate of 10 to 1. The guidance does not include the one-time impact
associated with the revaluation of our bolivar denominated monetary
assets and monetary liabilities, which includes our bolivar denominated
cash, due to the recent devaluation of the Venezuelan bolivar, or any
potential one-time impact from a future devaluation or the repatriation
of existing cash balances. Guidance for the year also excludes one-time
costs of $10 million to $20 million, mostly legal and advisory services,
relating to the Company’s response to information put into the
marketplace by a short seller which information the Company believes to
be inaccurate and misleading.

Based on current business trends the company’s first quarter fiscal 2013
and fiscal 2013 guidance is provided below.

Three Months Ending

Twelve Months Ending

March 31, 2013

December 31, 2013

Low

High

Low

High

Volume Point Growth vs 2012

11.5%

13.5%

8.5%

10.5%

Net Sales Growth vs 2012

15.0%

17.0%

12.0%

14.0%

Diluted EPS

$1.03

$1.07

$4.45

$4.65

Cap Ex ($ millions)

$20.0

$30.0

$165.0

$185.0

Effective Tax Rate

28.5%

30.5%

27.5%

29.5%

Announces Quarterly Dividend

The company reported today that its board of directors has approved a
dividend of $0.30 per share to shareholders of record March 5, 2013,
payable on March 19, 2013.

Share Repurchase Program Update

Subsequent to December 31, 2012, the company has repurchased 4.0 million
shares at an average cost of $40.61. There is currently $787.6 million
remaining on the existing $1 billion share repurchase authorization.

Fourth Quarter and Fiscal 2012 Earnings Conference Call

Herbalife senior management will host an investor conference call to
discuss its recent financial results and provide an update on current
business trends on Wednesday, February 20, 2013 at 8 a.m. PST (11 a.m.
EST).

The dial-in number for this conference call for domestic callers is
(877) 317-1296 and (706) 634-5671 for international callers (conference
ID 90082326). Live audio of the conference call will be simultaneously
webcast in the investor relations section of the company's website at http://ir.herbalife.com.

An audio replay will be available following the completion of the
conference call in MP3 format or by dialing(855) 859-2056 for
domestic callers or (404) 537-3406 for international callers (conference
ID 90082326). The webcast of the teleconference will be archived and
available on Herbalife's website.

About Herbalife Ltd.

Herbalife Ltd. (NYSE:HLF) is a global nutrition company that sells
weight-management, nutrition, and personal care products intended to
support a healthy lifestyle.Herbalife products are sold in over 80
countries through and to a network of independent distributors. The
company supports the Herbalife Family Foundation and its Casa Herbalife
program to help bring good nutrition to children. Herbalife's website
contains a significant amount of information about Herbalife, including
financial and other information for investors at http://ir.Herbalife.com.
The company encourages investors to visit its website from time to time,
as information is updated and new information is posted.

FORWARD-LOOKING STATEMENTS

Although we believe that the expectations reflected in any of our
forward-looking statements are reasonable, actual results could differ
materially from those projected or assumed in any of our forward-looking
statements. Our future financial condition and results of operations, as
well as any forward-looking statements, are subject to change and to
inherent risks and uncertainties, such as those disclosed or
incorporated by reference in our filings with the Securities and
Exchange Commission. Important factors that could cause our actual
results, performance and achievements, or industry results to differ
materially from estimates or projections contained in our
forward-looking statements include, among others, the following:

• any collateral impact resulting from the ongoing worldwide financial
environment including the availability of liquidity to us, our customers
and our suppliers or the willingness of our customers to purchase
products in a difficult economic environment;

• our reliance upon, or the loss or departure of any member of, our
senior management team which could negatively impact our distributor
relations and operating results;

• the competitive nature of our business;

• regulatory matters governing our products, including potential
governmental or regulatory actions concerning the safety or efficacy of
our products and network marketing program, including the direct selling
market in which we operate;

• legal challenges to our network marketing program;

• risks associated with operating internationally and the effect of
economic factors, including foreign exchange, inflation, disruptions or
conflicts with our third party importers, pricing and currency
devaluation risks, especially in countries such as Venezuela;

• uncertainties relating to the application of transfer pricing, duties,
value added taxes, and other tax regulations, and changes thereto;

We do not undertake any obligation to update or release any revisions
to any forward-looking statement or to report any events or
circumstances after the date hereof or to reflect the occurrence of
unanticipated events, except as required by law.

In addition to its reported results, the Company has included in the
tables below adjusted results that the Securities and Exchange
Commission defines as “non-GAAP financial measures.”Management
believes that such non-GAAP financial measures, when read in conjunction
with the Company’s reported results, can provide useful supplemental
information for investor in analyzing period to period comparisons of
the Company’s results.

The following is a reconciliation of net income and diluted earnings per
share, presented and reported in accordance with U.S. generally accepted
accounting principles, to net income adjusted for certain items:

Three Months Ended

Twelve Months Ended

12/31/2012

12/31/2011

12/31/2012

12/31/2011

Net income, as reported

$ 117,881

$ 105,357

$ 477,190

$ 412,578

Write-off of unamortized deferred financing cost

from debt refinancing (net of $214 tax benefit)

-

-

-

700

Net income, as adjusted

$ 117,881

$ 105,357

$ 477,190

$ 413,278

The following is a reconciliation of diluted earnings per share,
presented and reported in accordance with U.S. generally accepted
accounting principles, to diluted earnings per share adjusted for
certain items:

Three Months Ended

Twelve Months Ended

12/31/2012

12/31/2011

12/31/2012

12/31/2011

Diluted earnings per share, as reported

$ 1.05

$ 0.86

$ 4.05

$ 3.30

Write-off of unamortized deferred financing cost

from debt refinancing

-

-

-

0.01

Diluted earnings per share, as adjusted

$ 1.05

$ 0.86

$ 4.05

$ 3.31

The following is a reconciliation of total long-term debt to net debt: